Wednesday, June 8, 2011

National Bank of Poland Raises Policy Rate 25bps to 4.50%

The Narodowy Bank Polski's Monetary Policy Council raised its benchmark 7-day interest rate by 25 basis points to 4.50% from 4.25% previously. Folllowing the announcement the bank Governor, Marek Belka, said: "We plan to wait before making any more policy moves,"..."After four rate increases, it seems the time has come to see what effect they have on the Polish economy."

The Bank also increased the following rates by 25 basis points: the rediscount rate to 4.75%, the Lombard rate to 6.00%, and the deposit rate to 3.00%. Previously the Bank raised the 7-day intervention rate by 25 basis points to 4.25% in May this year. Poland reported inflation of 4.5% in April, up from 4.3% in March, and higher than the Bank's official inflation target of 2.5% +/- 1%.